TLcom declares $70m first shut on tech fund

Africa-focused enterprise capital agency TLcom has introduced a primary shut of $70m for its $150m tech fund, which is able to give attention to fast-growing, tech-enabled African startups in Egypt and East and West Africa. 

The agency, which has workplaces in Nairobi, Lagos and London, expects so as to add a further 20 early-stage startups to its portfolio with an emphasis on Seed and Sequence A phases, with ticket sizes starting from $500,000 to $15m. It’s going to goal companies in sectors together with fintech, mobility, agriculture, healthcare, training and ecommerce. A second shut of the fund is anticipated later in 2022.

The pandemic has seen a raft of African startups attain unicorn standing (valued at $1bn or extra), together with Egyptian funds agency Fawry, Nigerian funds firm Flutterwave and Senegal-based cellular cash supplier Wave.

Maurizio Caio, Nairobi-based founder and managing associate at TLcom, stated that the fundraising indicators an optimistic African tech sector. 

“Because the closing of our earlier fund, African tech has secured extra high-value financing rounds, exits and M&As than ever earlier than and that is solely just the start.

“It’s turning into more and more evident that our sector has damaged into a brand new period of maturity pushed by very sturdy enterprise fundamentals that African founders are demonstrating not solely within the fintech area, however throughout an enormous variety of the continent’s largely underserved markets.”

Traders within the fund’s first spherical embody German insurance coverage large Allianz by its AfricaGrow three way partnership with the German Funding Company, in addition to German media conglomerate Bertelsmann, King Philanthropies and FBNQuest.

Growth Finance Establishments (DFIs) who’ve invested embody CDC Group (the UK DFI quickly to rebranded as British Worldwide Investments), IFC, Proparco and Swedfund. 

TLcom has over $350m value of funds underneath administration throughout major and secondary funds. Present African investments, made by its TIDE Africa Fund, embody Andela, Okra, Twiga Meals, uLesson and others. 

Andela, which locations African tech expertise with international companies, reached unicorn standing in 2021 after elevating $200m in Sequence E funding, valuing the agency at over $1.5bn. 

Caio stated that the brand new fund would have a particular emphasis on feminine entrepreneurs. 

TLcom’s senior crew consists of Caio, senior associate Omobola Johnson in Nigeria, and companions Andreata Muforo in Kenya, and Ido Sum within the UK.

Martin Ewald, lead portfolio supervisor for affect investments at AfricaGrow/Allianz World Traders, stated, “One factor is obvious to those that are near the African VC market: it would develop.

“We at AfricaGrow consider far more is feasible when it comes to capital inflow into the continent particularly within the VC area. There may be appreciable upside for everybody if funding actions speed up much more: African companies can increase productiveness, achieve when it comes to competitiveness and technological edge and tens of thousands and thousands extra Africans might achieve steady employment whereas producing returns for buyers.”

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